SOUTHERN MISSOURI BANCORP, INC. [SMBC] Filings

10-Q 1 smbc-20220331x10q.htm 10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-23406


Southern Missouri Bancorp, Inc.
(Exact name of registrant as specified in its charter)

Missouri		43-1665523
(State or jurisdiction of incorporation)		(IRS employer id. no.)

2991 Oak Grove Road Poplar Bluff, MO		63901
(Address of principal executive offices)		(Zip code)

(573) 778-1800

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	SMBC	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes	☒	No	☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes	☒	No	☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):


Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12 b-2 of the Exchange Act)


Yes	☐	No	☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:


Class		Outstanding at May 9, 2022
Common Stock, Par Value $.01		9,308,373 shares

Table of Contents

SOUTHERN MISSOURI BANCORP, INC.

FORM 10-Q

INDEX


PART I.	Financial Information	PAGE NO.

Item 1.	Condensed Consolidated Financial Statements	3

	- Condensed Consolidated Balance Sheets	3

	- Condensed Consolidated Statements of Income	4

	- Condensed Consolidated Statements of Comprehensive Income	5

	- Condensed Consolidated Statements of Stockholders’ Equity	6

	- Condensed Consolidated Statements of Cash Flows	7

	- Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	62

Item 4.	Controls and Procedures	65

PART II.	OTHER INFORMATION	66

Item 1.	Legal Proceedings	66

Item 1a.	Risk Factors	66

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	66

Item 3.	Defaults upon Senior Securities	66

Item 4.	Mine Safety Disclosures	66

Item 5.	Other Information	66

Item 6.	Exhibits	67

	- Signature Page	69

Table of Contents

PART I: Item 1: Condensed Consolidated Financial Statements

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022 AND JUNE 30, 2021


	March 31, 2022		June 30, 2021
(dollars in thousands)	(unaudited)
Assets
Cash and cash equivalents	$	248,584	$	123,592
Interest-bearing time deposits		4,828		979
Available for sale securities		226,391		207,020
Stock in FHLB of Des Moines		6,081		5,873
Stock in Federal Reserve Bank of St. Louis		5,035		5,031
Loans receivable, net of ACL of $33,641 and $33,222 at March 31, 2022 and June 30, 2021, respectively		2,579,106		2,200,244
Accrued interest receivable		10,409		10,079
Premises and equipment, net		72,253		64,077
Bank owned life insurance – cash surrender value		48,387		43,817
Goodwill		27,738		14,089
Other intangible assets, net		7,830		7,129
Prepaid expenses and other assets		27,376		18,600
Total assets	$	3,264,018	$	2,700,530

Liabilities and Stockholders' Equity
Deposits	$	2,854,906	$	2,330,803
Advances from FHLB		42,941		57,529
Accounts payable and other liabilities		17,102		12,753
Accrued interest payable		869		779
Subordinated debt		23,043		15,243
Total liabilities		2,938,861		2,417,107

Commitments and contingencies

Common stock, $.01 par value; 25,000,000 shares authorized; 9,815,736 and 9,361,629 shares issued at March 31, 2022 and June 30, 2021, respectively		98		94
Additional paid-in capital		119,115		95,585
Retained earnings		228,885		200,140
Treasury stock of 483,038 and 456,431 shares at March 31, 2022 and June 30, 2021, respectively, at cost		(16,452)		(15,278)
Accumulated other comprehensive income (loss)		(6,489)		2,882
Total stockholders' equity		325,157		283,423
Total liabilities and stockholders' equity	$	3,264,018	$	2,700,530

See Notes to Condensed Consolidated Financial Statements

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SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE- AND NINE- MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Unaudited)


	Three months ended				Nine months ended
	March 31,				March 31,
(dollars in thousands except per share data)	2022		2021		2022		2021
INTEREST INCOME:
Loans	$	27,060	$	26,005	$	81,614	$	78,737
Investment securities		524		559		1,608		1,568
Mortgage-backed securities		646		466		1,833		1,479
Other interest-earning assets		109		70		239		159
Total interest income		28,339		27,100		85,294		81,943
INTEREST EXPENSE:
Deposits		2,871		3,494		8,426		11,748
Advances from FHLB		167		325		613		1,052
Subordinated debt		187		132		447		403
Total interest expense		3,225		3,951		9,486		13,203
NET INTEREST INCOME		25,114		23,149		75,808		68,740
PROVISION (BENEFIT) FOR CREDIT LOSSES		1,552		(409)		1,247		1,591
NET INTEREST INCOME AFTER PROVISION (BENEFIT) FOR CREDIT LOSSES		23,562		23,558		74,561		67,149
NONINTEREST INCOME:
Deposit account charges and related fees		1,560		1,275		4,743		3,974
Bank card interchange income		1,025		1,004		2,952		2,670
Loan late charges		135		118		414		398
Loan servicing fees		170		217		504		895
Other loan fees		606		266		1,556		898
Net realized gains on sale of loans		204		853		934		3,449
Net realized gains on sale of AFS securities		—		90		—		90
Earnings on bank owned life insurance		291		270		854		1,524
Other income		913		431		2,746		1,287
Total noninterest income		4,904		4,524		14,703		15,185
NONINTEREST EXPENSE:
Compensation and benefits		9,223		7,739		25,745		23,004
Occupancy and equipment, net		2,399		1,990		6,710		5,826
Data processing expense		1,935		1,253		4,501		3,490
Telecommunications expense		308		317		946		940
Deposit insurance premiums		178		174		536		593
Legal and professional fees		341		256		931		690
Advertising		312		240		917		689
Postage and office supplies		202		198		582		585
Intangible amortization		363		338		1,040		1,057
Foreclosed property expenses/losses		115		48		449		137
Other operating expense		1,381		975		3,692		2,836
Total noninterest expense		16,757		13,528		46,049		39,847
INCOME BEFORE INCOME TAXES		11,709		14,554		43,215		42,487
INCOME TAXES		2,358		3,096		9,133		8,996
NET INCOME	$	9,351	$	11,458	$	34,082	$	33,491

Basic earnings per share	$	1.03	$	1.27	$	3.81	$	3.69
Diluted earnings per share	$	1.03	$	1.27	$	3.80	$	3.69
Dividends paid	$	0.20	$	0.16	$	0.60	$	0.46

See Notes to Condensed Consolidated Financial Statements

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SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE- AND NINE- MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Unaudited)


	Three months ended				Nine months ended
	March 31,				March 31,
(dollars in thousands)	2022		2021		2022		2021

Net income	$	9,351	$	11,458	$	34,082	$	33,491
Other comprehensive loss:
Unrealized losses on securities available-for-sale		(9,579)		(2,227)		(12,014)		(2,541)
Less: reclassification adjustment for realized gains included in net income		—		90		—		90
Tax benefit		2,108		511		2,643		579
Total other comprehensive loss		(7,471)		(1,806)		(9,371)		(2,052)
Comprehensive income	$	1,880	$	9,652	$	24,711	$	31,439

See Notes to Condensed Consolidated Financial Statements

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Table of Contents

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND NINE- MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Unaudited)


	For the three- and nine- month period ended March 31, 2022
			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury			Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Income (Loss)		Equity

BALANCE AS OF DECEMBER 31, 2021	$	94	$	95,675	$	221,312	$	(16,452)	$	982	$	301,611

Net Income						9,351						9,351
Change in unrealized loss on available for sale securities										(7,471)		(7,471)
Dividends paid on common stock ($.20 per share)						(1,778)						(1,778)
Stock option expense				44								44
Stock grant expense				515								515
Common stock issued		4		22,881								22,885
BALANCE AS OF MARCH 31, 2022	$	98	$	119,115	$	228,885	$	(16,452)	$	(6,489)	$	325,157

BALANCE AS OF JUNE 30, 2021	$	94	$	95,585	$	200,140	$	(15,278)	$	2,882	$	283,423

Net Income						34,082						34,082
Change in unrealized loss on available for sale securities										(9,371)		(9,371)
Dividends paid on common stock ($.60 per share)						(5,337)						(5,337)
Stock option expense				117								117
Stock grant expense				532								532
Common stock issued		4		22,881								22,885
Treasury stock purchased								(1,174)				(1,174)
BALANCE AS OF MARCH 31, 2022	$	98	$	119,115	$	228,885	$	(16,452)	$	(6,489)	$	325,157


	For the three- and nine- month period ended March 31, 2021
			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury		Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Income		Equity

BALANCE AS OF DECEMBER 31, 2020	$	93	$	95,109	$	177,861	$	(9,575)	$	4,201	$	267,689

Net Income						11,458						11,458
Change in unrealized loss on available for sale securities										(1,806)		(1,806)
Dividends paid on common stock ($.16 per share)						(1,441)						(1,441)
Stock option expense				440								440
Stock grant expense												—
Common stock issued		1										1
Treasury stock purchased								(3,402)				(3,402)
BALANCE AS OF MARCH 31, 2021	$	94	$	95,549	$	187,878	$	(12,977)	$	2,395	$	272,939

BALANCE AS OF JUNE 30, 2020	$	93	$	95,035	$	165,709	$	(6,937)	$	4,447	$	258,347

Impact of ASU 2016-13 adoption						(7,151)						(7,151)
Net Income						33,491						33,491
Change in unrealized loss on available for sale securities										(2,052)		(2,052)
Dividends paid on common stock ($.46 per share)						(4,171)						(4,171)
Stock option expense				514								514
Stock grant expense												—
Common stock issued		1										1
Treasury stock purchased								(6,040)				(6,040)
BALANCE AS OF MARCH 31, 2021	$	94	$	95,549	$	187,878	$	(12,977)	$	2,395	$	272,939

See Notes to Condensed Consolidated Financial Statements

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Table of Contents

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE- MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Unaudited)

SOUTHERN MISSOURI BANCORP, INC. [SMBC] Filings
10-Q	[2022-05-10]
10-Q	[2022-02-09]
10-Q	[2021-11-09]
10-K	[2021-09-13]
10-Q	[2021-05-10]
10-Q	[2021-02-09]
10-Q	[2020-11-09]
10-K	[2020-09-14]
10-Q	[2020-05-11]
10-Q	[2020-02-10]
10-Q	[2019-11-12]
10-K	[2019-09-13]
10-Q	[2019-05-10]
10-Q	[2019-02-11]
10-Q	[2018-11-09]
10-K	[2018-09-13]
10-Q	[2018-05-10]
10-Q	[2018-02-09]
10-Q	[2017-11-09]
10-K	[2017-09-13]
10-Q	[2017-05-10]
10-Q	[2017-02-09]
10-Q	[2016-11-09]
10-K	[2016-09-13]
10-Q	[2016-05-10]
10-Q	[2016-02-09]
10-Q	[2015-11-09]
10-K	[2015-09-14]
10-Q	[2015-05-11]
10-Q	[2015-02-09]
10-Q	[2014-11-10]
10-K	[2014-09-15]
10-Q	[2014-05-15]
10-Q	[2014-02-14]
10-Q	[2013-11-14]
10-K	[2013-09-24]
10-Q	[2013-05-15]
10-Q	[2013-02-14]
10-Q	[2012-11-14]
10-K	[2012-09-24]
10-Q	[2012-05-15]
10-Q	[2012-02-14]